# Shenwan Hongyuan

Lighting the Path to 1.6T: Why Optical Interconnects are the Next Frontier in the Global AI Arms Race

The AI industry is shifting from 800G to 1.6T optical interconnects to overcome computing bottlenecks, according to a report by Shenwan Hongyuan. This technological leap is expected to drive a market expansion from $18 billion to $900 billion by 2030, significantly increasing the value of optical hardware in the AI supply chain.